Kuala Lumpur:Genting Bhd's shares experienced a significant drop on Monday, leading Bursa Malaysia to halt the intraday short-selling (IDSS) of the stock for the remainder of the day.

According to BERNAMA News Agency, by 1126 am, Genting's shares had decreased by 30 sen, or 15.97 percent, settling at RM1.58. Bursa Malaysia announced the suspension as the last traded price of the approved securities fell more than 15 percent, or 15 sen, from the reference price.

The IDSS suspension will remain in effect until the end of the day, with short selling set to resume the following day at 830 am. The decline in Genting's share price followed the company's announcement of a plan to raise RM1.25 billion through a rights issue. The funds are intended to repay RM800 million of short-term borrowings, with the remainder allocated for working capital.

CIMB Securities Sdn Bhd released a note suggesting that with a one-for-four rights issue priced at RM1.30 per share, the theoretical ex-rights price would be RM1.75, based on the five-day volume-weighted average price up to last Friday. Despite maintaining a 'hold' call on Genting with an unchanged target price, CIMB anticipates a negative reaction from investors.